JPMorgan reported that biopharma dealmaking surged in Q1 2026 even as early-stage venture funding stayed under pressure, with licensing activity carrying a large share of announced value. The analysis suggests acquirers and license partners increasingly structure deals with back-end, milestone-heavy economics—pushing development risk to counterparties. According to the report, licensing and M&A momentum remained strong, while upfront cash represented a relatively small fraction of total deal value, consistent with a more risk-averse posture. JPMorgan also noted venture funding totaled $6.9 billion in Q1 2026, down from $8.6 billion a year earlier. For biotech investors and operators, the mix points to continued access to late-stage and validated assets, while seed and Series A financing remains harder—potentially shaping how companies plan IND timelines and partnering strategies.